Agenda item
GROUND LEASE BETWEEN THE CITY OF ESCONDIDO AND COSTCO WHOLESALE CORPORATION — approved 5-0
Council Meeting (Closed Session 4:30 PM), item 5, GROUND LEASE BETWEEN THE CITY OF ESCONDIDO AND COSTCO WHOLESALE CORPORATION was approved (5-0). [Minutes, p. 3]
Tier 3 · Human approved · Updated Sep 1, 2026
The Escondido City Council approved a ground lease that will let Costco Wholesale Corporation take over a piece of city land at the North County Mall site, adopting Resolution No. 2026-139 and authorizing the Mayor and/or authorized officers to sign the lease and related documents. The vote was 5-0.
The lease runs for a term of twenty years, with seven five-year options to extend it. The land involved is Parcel 1 of the 8 distinct parcels that make up the North County Mall site at 272 East Via Rancho Parkway.
That parcel is currently leased to Transform Operating Stores LLC, known as Transformco, which the record identifies as the successor-in-interest to Sears, Roebuck and Co.
Council member Fitzgerald made the motion and Council member C. Garcia seconded it. The item came from the City Manager's Office, was presented by Deputy City Manager Christopher McKinney, and city staff had recommended approval. The record does not say how much Costco will pay the city under the lease, when the term begins, or what Costco intends to do with the property.
The record
- Meeting
- Council Meeting (Closed Session 4:30 PM)
- Body
- City Council
- Item
- 5
- Request
- Request City Council adopt Resolution No. 2026-139, authorizing the Mayor and/or Authorized Officers to execute a lease agreement and related documents for a lease term of twenty years with seven, five-year options for Costco Wholesale Corporation (“Costco”).
- Staff recommendation
- approval
- Presented by
- Christopher McKinney, Deputy City Manager
- Outcome
- approved
- Vote
- 5-0
- Moved by
- Fitzgerald
- Seconded by
- C. Garcia
- Case or file number
- 0600-10; A-3609
- Address
- 272 East Via Rancho Parkway, Escondido
- Applicant
- Costco Wholesale Corporation
From the document
Every field above was read from one of these passages.
5. GROUND LEASE BETWEEN THE CITY OF ESCONDIDO AND COSTCO WHOLESALE CORPORATION Request City Council adopt Resolution No. 2026-139, authorizing the Mayor and/or Authorized Officers to execute a lease agreement and related documents for a lease term of twenty years with seven, five-year options for Costco Wholesale Corporation (“Costco”). The property is Parcel 1 of the 8 distinct parcels comprising the North County Mall site at 272 East Via Rancho Parkway, Escondido. The property is currently leased to Transform Operating Stores LLC (“Transformco”) as successor-in-interest to Sears, Roebuck and Co. (“Sears”). (File Number 0600-10; A-3609)
Staff Recommendation: Approval (City Manager’s Office: Christopher McKinney, Deputy City Manager) Presenter: Christopher McKinney, Deputy City Manager
Motion: Fitzgerald; Second: C. Garcia; Approved: 5-0